Whole Life Insurance

Life is full of surprises. And although we always count on them being good, sometimes we have to face the difficult parts of life as well. Fortunately, there are ways in which you can secure the financial future of your family, so going through the most difficult situation, which is the loss of a loved one, is not linked with financial turmoil.

Taking out a Whole life insurance policy is one of the best ways to do that.

What Is Whole Life Insurance?

Whole life insurance is a permanent life insurance offering an insured person protection for the rest of their life. The most substantial difference between Whole life insurance and Term life insurance is the fact that the first policy guarantees the payout, as the insurance ends no sooner than after one’s death, while the second type offers protection for a specific time, i.e., for 10, 15 or 30 years.

Characteristics of Whole life insurance are:

  • Fixed premiums – throughout the duration of your policy, your premiums will remain the same.
  • Guaranteed death benefit – since the policy typically ends after the death of the insured individual, the payout is guaranteed.
  • Guaranteed cash value growth – the cash value will grow with time, offering you the ability to take loans against your policy while you’re still alive.

Whole life insurance plans with cash value typically pay dividends from the carrier’s profits.

These companies are known as mutual companies meaning the policy holders mutually have ownership and voting rights in the insurance company.

Some people confuse whole life for other permanent life insurance products such as IUL (Index Universal Life) or GUL (Guaranteed Universal Life).

IULs can have the opportunity for growth based on a stock market index instead of the insurance company dividend profits. These plans can have similar cash value benefits, and some also have riders that can be purchased that guarantee the policy to a certain age with a no-lapse guarantee.

GULs are also considered a permanent form of insurance that have custom options that let you select what age you would like the policy to have a permanent guarantee. Some people choose to guarantee through age 100 or even all the way to age 121.

As long as the terms of a Whole life insurance or Permanent life insurance agreement are being met, meaning you’re paying premiums on time, this policy offers considerable benefits.

Whole Life Insurance Benefits

While a Whole life insurance policy comes with many advantages, it’s also one of the most expensive types of insurance. This means that a decision about purchasing this policy should be made after careful consideration.

What are some of the crucial benefits you can receive when choosing a Whole life insurance policy?

Peace of Mind

Many people purchase a Whole life insurance policy specifically for the level of protection it provides. For one, as long as you comply with insurance’s requirements, you will benefit from a guaranteed death benefit. After you or your spouse pass away, the beneficiaries of the policy will receive a lump sum, which can be used to cover the costs of a funeral, help with paying off the mortgage and other financial obligations, or cover the costs of living.

Having such a financial cushion in one of the most challenging experiences a person can go through is invaluable. You can sleep peacefully, knowing that whatever happens to you, your family will be protected.


It’s also quite common to view Whole life insurance as an inheritance. If you wish to secure the financial future of your children or grandchildren, doing so with the payout from your policy is a completely valid solution. This way, you can ensure your loved ones are left with sufficient protection, at the same time not subjecting yourself to a considerable financial burden.

Fixed Costs

All the premiums, as well as the payout from this type of insurance, are fixed, meaning they don’t change throughout the policy’s term. At the beginning of the term, you will know exactly what the payout from your policy will look like. You don’t need to worry that, with time, your premiums will increase.

Insurers cannot increase your premiums because of health problems or other risk factors that may arise, which offers a great sense of comfort.

Tax-advantaged Benefits

It’s also crucial to talk about the tax benefits you can receive from this type of insurance. First of all, the payout from the policy is tax-free. Your cash values grow with time on a tax-deferred basis, which means they cannot be taxed while they grow.

Retirement Funding

You can take policy loans from the cash value of your policy, and you can also build supplemental retirement income with it. This comes with considerable advantages, as we mentioned above, money from your policy is generally tax-free, which means it can offer a bigger value than your retirement savings.

Using a Whole life insurance policy as a part of your retirement financial mix might come with significant pros.

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Who Should Consider Whole Life Insurance?

How to know if you should consider buying Whole life insurance? There is no perfect answer here. Many people opt for buying this insurance to ensure their spouse and children are sufficiently protected from financial turbulence in case of their passing. This in itself is a good enough reason to consider such protection, as life is unexpected, and no one wants to leave their loved ones without a safety net.

If you have some considerable financial obligations, like a mortgage, it also might be a good idea to think about potential what-ifs. Especially if you’re the sole breadwinner of your family, securing your mortgage with life insurance makes a lot of sense.

Another factor to consider is whether or not you want to leave your family inheritance. If the answer is yes, then choosing to do so through Whole life insurance can be particularly beneficial, as the payout from the policy will not be reduced by taxes.

How To Choose Best Whole Life Insurance?

The goal of having a Whole life policy is to secure your family’s financial future without putting too big of a strain on your current financial standing. This means that the sum you’re insuring yourself for, and the policy’s premiums have to match both your insurance goals and your financial abilities.

To find a suitable policy, you should first calculate how big of a payout you need and then compare different products.

Get Whole life insurance quotes from Simple Life Insure and compare Whole life insurance policies from leading companies on the market. We’ll be able to help you find the most beneficial policy that fits your needs and financial goals!

Learn more about our mission here.

The Best Whole Life Insurance Companies

Which companies offer the best Whole life insurance?

Doing the research on your own can be a time-consuming endeavor. Especially if you want to compare different plans from various insurers on the market. Fortunately, there is an easier way.

Our experts have years of experience in the insurance market and work closely with the best companies to deliver you the most beneficial rates on insurance products. Check our list of the best life insurance companies out there and see what they can offer you.

A couple of carriers that have competitive rates along with strong dividend history on their whole life insurance plans are Penn Mutual and Foresters Financial. It is always a good idea to speak with an independent life insurance agent to consider all carriers and options since it can be different for each client.

Get Whole Life Insurance Quote

Don’t wait to take care of your future until it’s too late. Insurance premiums increase with age, so the sooner you’ll start to think about life insurance, the more affordable plans you’ll be offered.

Fill out our short form and get instant Life Insurance Quotes. Compare different plans and choose the one that offers you the biggest benefits. With Simple Life Insure, it’s easy – we do all the heavy lifting for you.

We are experts with extensive experience and contacts in the industry. Thanks to that, we’re able to work with underwriters and ensure our clients get pre-approved for insurance, significantly reducing the number of rejections.

With us, you’ll find the right policy in no time. Get a Whole life insurance quote and welcome your future today.

Whole Life Insurance FAQs

Is Whole life insurance worth it?

Whether a Whole life insurance policy is worth it or not will depend on your specific circumstances. If you want to secure your loved ones in case of your death and leave them with inheritance or mortgage protection, then yes, this policy might be worth it.

Whole life insurance offers considerable benefits, but it’s also the most expensive type of policy. Still, if you decide to buy a policy in your twenties and thirties, you can expect affordable premiums.

At what point does a Whole life insurance policy endow?

Most Whole life insurance policies endow at age 100. If a policyholder lives longer than that, the insurer might pay the full cash value of the policy to them and close the policy. Another option would be to extend the policy’s term.

Are Whole life insurance premiums tax deductible?

Generally speaking, life insurance premiums cannot be deducted from a tax return. Whole life insurance policyholders do not need to pay income taxes on their plan’s cash value growth, as it is with some retirement plans, like IRAs.

What are the disadvantages of Whole life insurance?

The most significant cons of Whole life insurance are its higher price and the fact that it is a permanent solution. Whole life insurance policies are more expensive than, for example, Term life insurance, which covers you for a specific period. The sooner you take out the Whole life insurance policy, the lower your costs will be.

Another thing to consider is the fact that this policy ends after the policyholder’s death. However, life is long, and your insurance needs may change during your lifetime. It’s possible to resign from a policy, cash it out and purchase a different product, though.


  • Ty Stewart

    Ty Stewart is a founder and contributor of SimpleLifeInsure.com. He started researching and studying about life insurance when he got his first policy for his own family. He has been featured as a life insurance expert speaker at agent conventions and in top publications. As an independent licensed life insurance agent he has helped clients nationwide to secure affordable coverage while making the process simple.

  • Bennett Bier

    I’m Bennett Bier, owner, author and fact checker of Simple Life Insure. I believe working with a small independent broker offers consumers more personal attention and superior customer service. As an independent agent licensed in all 50 states and the District of Columbia I have access to many of the top A+ rated life insurance carriers. This lets me locate a plan that you will qualify for while saving you money at the same time. Over the years I have mastered the art of underwriting, getting approvals even for my highest risk clients. I’m also likely the person that will answer the phone when you call.